Jonathan Bennett
The shifting policy landscape for digital identity
The pace of change in digital identity has accelerated rapidly over the last few months. In September 2025, Keir Starmer announced plans for a new mandatory national digital ID, triggering widespread speculation, media scrutiny, and public debate. What initially appeared to be a clear and decisive policy direction quickly became a source of uncertainty and concern across regulated sectors. At the start of the new year, that apparent certainty unravelled, with the Government confirming that the national digital ID would be delayed until 2029 and introduced on a voluntary basis.
That delay does not mean digital ID adoption is on hold. In reality, digital identity is already here and law firms need to be preparing now.
The first government-issued digital ID launched with the Veterans ID Card in October. At present, this functions largely as a proof of concept, with limited practical use and no straightforward mechanism for law firms to independently validate its authenticity. Adoption hasn’t been high either with just 15,000 former members of the UK’s armed forces have applied which equates to just 1% of the 1.8 million eligible former personnel. However, the groundwork for broader adoption and verification is now underway.
Then last week, the Office for Digital Identities confirmed that a pilot for a digital driving licence is in progress, alongside the publication of technical documentation outlining how government-issued digital IDs will integrate with the private sector.
The emerging digital identity ecosystem
Alongside government initiatives, much of the real momentum is coming from the private sector. Digital wallets developed by regulated technology providers are already enabling individuals to store and reuse verified identity credentials and documents across multiple services. This approach is being actively supported by the Data (Use and Access) Bill, which provides the legislative framework for trusted data sharing, and by certification under the UK Digital Identity & Attributes Trust Framework (DIATF). Together, these measures create a regulated environment in which private-sector wallets can operate with clear standards for security, governance, and interoperability, allowing law firms to rely on reusable identity credentials with confidence while maintaining independent oversight and auditability.
What is emerging is a mixed ecosystem. On one side, there will be government-issued digital IDs. On the other, private-sector digital wallets capable of securely storing verified physical documents and digital identity credentials. Major technology providers such as Apple and Google already allow certified ID credentials to be stored within their wallets across the USA and are looking to create similar schemes here for typically lower-risk identity use cases.
Preparing your firm
Digital identity is not a future consideration, it is an emerging reality. Law firms that understand how digital IDs and reusable identity credentials will be issued, stored, and verified will be better placed to maintain robust compliance while reducing friction for clients.
For more detail, visit our website to access our in-depth guide on reusable ID and what it means for legal professionals.